Module 1F: Futures Foundations · Lesson 5 of 13 · Back to Futures Foundations · Course
What you’ll learn
- why futures have expiry dates
- contract month codes (H, M, U, Z)
- what “rolling” means and when traders do it
- continuous charts and price gaps
- the extra care needed with oil and gold
Every futures contract expires
A futures contract is for a specific month. On the last trading day it stops trading and is settled – either in cash (stock index futures) or by physical delivery (crude oil CL and gold GC). Speculators close or “roll” their positions before then.
Contract months and codes
US stock index futures such as ES, MES, NQ and MNQ are listed on a quarterly cycle: March, June, September and December. They expire on the third Friday of the contract month, settled against a special opening price of the index (CME Group, checked 18 October 2026).
Each month has a letter code:
| Month | Code | Month | Code |
|---|---|---|---|
| January | F | July | N |
| February | G | August | Q |
| March | H | September | U |
| April | J | October | V |
| May | K | November | X |
| June | M | December | Z |
So MESZ6 is the December 2026 Micro E-mini S&P 500 contract. Some platforms write it as “MES 12-26”.
The front month and rolling
The front month is the contract most people are trading – usually the nearest one. As expiry approaches, traders move to the next contract and volume shifts across. Moving your position from the expiring contract to the next one is called rolling: you close the old contract and open the same position in the new one.
For the quarterly index contracts, most volume moves to the next contract around a week before expiry. Your platform will usually show which contract is the front month, and many have a “roll date” setting. Prop firms often expect you to trade the front month and may close positions in an expiring contract – check the firm’s rules.
Why the price is different in the next contract
The December and March contracts don’t trade at exactly the same price. The difference reflects interest rates, dividends (for index futures) and storage costs (for commodities). It isn’t a profit or a loss – but it means:
- your stop and target levels may need adjusting when you roll, and
- charts can show a jump at the roll date.
Continuous charts
To see a long price history, platforms join contracts together into a continuous chart. Some show the raw prices (with a gap at each roll); others “back-adjust” older prices to remove the gap. Back-adjusted charts are good for studying patterns, but the old prices on them aren’t real traded prices. Know which one you’re looking at, especially when you read volume or backtest.
Oil and gold need extra care
- Crude oil (CL) lists a contract for every month, and trading ends a few business days before the 25th of the month before delivery. It’s physically delivered, so brokers make speculators close or roll well before expiry. MCL is cash-settled and stops trading one business day before CL.
- Gold (GC) is physically delivered; the actively traded months are February, April, June, August, October and December. Brokers usually require you to be out before the first notice day, which comes before the last trading day.
Source: CME Group contract specifications and rulebook, checked 18 October 2026. Always check exact dates on the CME calendar or your platform.
Key takeaways
- Futures expire. US index futures expire on the third Friday of March, June, September and December.
- Month codes: H (Mar), M (Jun), U (Sep), Z (Dec), plus the others for monthly contracts.
- Rolling means closing the expiring contract and reopening in the next one.
- Continuous charts can be raw or back-adjusted – know which.
- Oil and gold are physically delivered: brokers make you close or roll early.
Quick check
- What does MNQH7 mean?
- When do US index futures expire?
- Why might your chart jump on the roll date?
Answers: 1) Micro E-mini Nasdaq-100, March 2027. 2) The third Friday of the contract month (March, June, September, December). 3) The next contract trades at a slightly different price because of interest rates and dividends.
FAQs
What happens if I forget to roll?
For cash-settled index futures, the position settles in cash at expiry. For physically delivered contracts, your broker will normally close it for you before delivery – often at a bad time and with a fee. Don’t rely on it.
Do I pay to roll?
You pay normal commission to close and reopen, plus any spread between the two trades.
Disclaimer: This page is general education, not financial, investment or tax advice or a personal recommendation, and it doesn’t take your circumstances into account. Examples are hypothetical, for illustration only, and not an invitation to buy or sell. Learning to trade doesn’t guarantee profits. Past performance is not a reliable guide to future results. Futures, spread bets and CFDs are complex and carry a high risk of losing money quickly because of leverage, and most retail traders lose money. With a real futures account, losses can exceed your deposit. Only trade with money you can afford to lose, and speak to an independent FCA-authorised adviser if you’re unsure. Contract specifications, market hours and margin concepts were checked against CME Group on 18 October 2026 and can change. Read our full risk warning.